A number of estate plans include trusts, which can be used to avoid probate, provide for minor children, and in some cases reduce estate taxes. It is in your best interest to review your estate plan periodically to ensure it meets your current needs. Also, if you have any additional questions or concerns about considerations you should make when setting up a trust, or mistakes to avoid, continue reading and give our skilled PA trust attorneys a call today. Our legal team is on your side no matter what you are facing. In the meantime, here are some questions you may have:
What are some considerations I should make when setting up my trust in Pennsylvania?
You will need to name beneficiaries for your trust. In many cases, these beneficiaries will involve children or grandchildren. Once your children get older, it is suggested that you consider creating or amending a trust to reflect each child’s needs. You should also look over your trust to determine whether the date the children will obtain their inheritance is still relevant to the circumstances. You might find it better to delay giving your children large sums of money until they have reached a certain age or have completed educational or career milestones. Furthermore, you should periodically check all your estate planning documents to make sure the people who were selected as guardians for minor children are still appropriate and willing to take on the responsibility.
In carrying out the terms of a trust, the trustee may have to postpone payments to beneficiaries. You will want to make sure you are choosing wisely if choosing a family member as the trustee because certain cases can cause tension in an otherwise loving relationship. In some cases, you may consider hiring a corporate trustee or a trusted non-family member instead.
What are the 5 most common mistakes to avoid when setting up a trust?
While setting up a trust can seem overwhelming, we are here to tell you that it does not have to be. Take note of the five mistakes that you should avoid:
- Not funding the trust
- Failing to provide clear instructions for the trust
- Not specifying beneficiaries
- Making a poor choice in choosing a trustee
- Failing to review and update your trust
Keep in mind that before creating and funding a trust, you should hire the services of an experienced attorney that has knowledge of estate planning. At Friedman Schuman, our legal team will ensure that your trust is prepared perfectly. Give us a call today to get started.
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Friedman Schuman is an experienced and dedicated legal resource for clients throughout Pennsylvania. Contact Friedman Schuman today to schedule a consultation.